Sergio Cragnotti, the chairman and CEO of Italian canned foods group Cirio, is to step down, enabling the crisis-hit company to receive a €20m (US$21m) loan.

Cirio’s creditor banks had insisted Cragnotti resign before they advanced the loan, which is seen as vital to the company’s survival.

Giovanni Fontana is to succeed Cragnotti as Cirio’s chairman, while Gianfranco Cianci has been named CEO and Roberto Colavolpe is to step into the role of chief financial officer.

The company said that Cragnotti would stay on Cirio’s board but would have no management authority.

Quoting a financial source, Reuters reported that Cirio’s advisers and its new management intended to rewrite a restructuring plan for the group, which could soon sell Del Monte Pacific and its real estate.